2022 Annual Review of Special Rates (Results)

Memorandum for Heads of Executive Departments and Agencies From: Kiran A. Ahuja Director Subject: 2022 Annual Review of Special Rates (Results) December 23, 2022 CPM-2022-23

The U.S. Office of Personnel Management (OPM) conducts an annual review of special rates established under 5 U.S.C. 5305 to determine the disposition of special rate schedules when General Schedule (GS) pay is adjusted under 5 U.S.C. 5303. Based on OPM’s annual review, special rate tables may be terminated, decreased, or increased. (See OPM’s October 19, 2022, data call memorandum (CPM 2022-18) for further information.) Agencies were informed in the October 2022 data call memorandum that the default January 2023 adjustment for special rates would be equal to the January 2023 across-the-board adjustment for GS base rates. That memorandum also noted that the across-the-board adjustment for GS base rates would be 4.1 percent, as specified in the President’s alternative plan for January 2023 pay adjustments. Further, pursuant to OPM’s instructions, each agency conducted a review of its special rate schedules. No agency requested a January 2023 adjustment for special rates different from the default amount. Accordingly, based on the 2022 annual review of special rates, I have determined that the January 2023 adjustment for existing special rates will be 4.1 percent. The effective date for January 2023 pay adjustments is the first day of the first applicable pay period beginning on or after January 1, 2023 (January 1, 2023, based on the standard biweekly payroll cycle). Please note that agencies having existing or likely staffing problems can submit special rate requests any time throughout a calendar year. Information on how agencies can make special rate requests is posted on the OPM website at https://www.opm.gov/special-rates/srsrequest.aspx. Additional information regarding the 2022 annual review and January 2023 special rates is provided below. Special Rates in Nonforeign Areas For the 2022 Annual Review, we reminded agencies of the results of our analysis of special rates in nonforeign areas during the 2012 annual review, and that special rates in nonforeign areas would be reexamined yearly as part of our overall annual review of special rates. During the 2022 Annual Review, no agencies requested termination of special rates or a pay adjustment different from the base GS increase for positions in nonforeign areas. Accordingly, special rates in nonforeign areas will receive the 4.1-percent increase. Also, special rate tables currently receiving Nonforeign Area Retirement Equity Assurance Act of 2009 (NAREAA) additional adjustments will receive the NAREAA additional adjustments shown in Attachment 1.

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Capped Special Rates Under 5 U.S.C. 5305(a)(1), the maximum special rate is the rate payable for level IV of the Executive Schedule (EX-IV), which is $183,500 in 2023. Some special rates for 2023 are capped at that EX-IV rate. Attachment 2 lists capped special rates by table, grade, and step. Terminated Special Rates Special rates are terminated based on OPM’s annual review of special rates when covered agencies report to OPM that applicable special rates are no longer necessary or when GS locality rates of pay exceed special rates at the same grade and step due to increases in locality pay. (Under 5 U.S.C. 5305(h), an employee’s entitlement to a special rate ends if the employee is entitled to a higher rate of basic pay, such as a locality rate of pay under 5 U.S.C. 5304.) No agencies reported to OPM in response to the annual review that any special rate tables would no longer be necessary in 2023. However, while no special rate tables will terminate entirely in January 2023 due to increases in locality pay, some special rates tables will have one or more pay rates that terminate effective January 1, 2023, because applicable 2023 locality rates of pay are higher due to January 2023 increases in locality pay percentages. In such cases, the special rate tables will not show a special rate at affected grades and steps because higher locality pay rates apply. Also, for some special rate tables that cover multiple locations, certain locations will be removed from coverage because the 2023 locality rates in those locations are higher than the special rates at all grades and steps. Termination of special rates in these situations will not result in a loss of pay for covered employees because they will receive a higher locality rate of pay. Additional Information Agency headquarters-level human resources offices may contact OPM at pay-leavepolicy@opm.gov. Employees should contact their agency human resources office for further information on this memorandum. Attachment 1 - 2023 Additional Adjustments for Special Rate Tables in Nonforeign Areas Attachment 2 - Capped Special Rates in 2023 cc: Chief Human Capital Officers (CHCOs) Deputy CHCOs Human Resources Directors

Attachment 1—2023 Additional Adjustments for Special Rate Tables in Nonforeign Areas Under section 1915(b) of the Nonforeign Area Retirement Equity Assurance Act of 2009 (NAREAA), during the January 2010-January 2012 transition period, special “additional adjustments” were added to the special rates that would have otherwise been payable in nonforeign areas. These additional adjustments were designed to provide special rate increases equal to the locality pay increases received by non-special rate employees during the transition period. They are added to the special rate supplement that would have otherwise applied. Special rate supplements and additional adjustments are payable only to the extent they do not cause the employee’s special rate to exceed the statutory EXIV cap on special rates ($183,500 in 2023). The EX-IV cap will be reflected in published special rate schedules. Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2023 Additional Adjustments for Special Rate Tables in the State of Alaska (Annual Amounts in Dollars) Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 6,577 6,798 7,016 7,234 7,452 7,580 7,796 8,014 8,023 7,395 7,571 7,816 8,023 8,114 8,352 8,591 8,830 9,068 8,069 8,338 8,607 8,876 9,145 9,414 9,684 9,953 10,222 9,058 9,360 9,662 9,964 10,266 10,568 10,870 11,172 11,473 10,134 10,472 10,810 11,148 11,486 11,824 12,162 12,500 12,838 11,297 11,674 12,050 12,427 12,803 13,179 13,556 13,932 14,309 12,554 12,972 13,391 13,809 14,227 14,646 15,064 15,483 15,901 13,903 14,366 14,830 15,293 15,757 16,220 16,684 17,147 17,611 15,356 15,867 16,379 16,891 17,403 17,914 18,426 18,938 19,450 16,910 17,473 18,037 18,601 19,165 19,728 20,292 20,856 21,420 18,579 19,198 19,817 20,436 21,055 21,675 22,294 22,913 23,532 22,268 23,010 23,753 24,495 25,237 25,980 26,722 27,464 28,206 26,480 27,362 28,245 29,128 30,010 30,893 31,775 32,658 33,541 31,291 32,334 33,377 34,420 35,463 36,506 37,549 38,592 39,635 36,807 38,033 39,260 40,487 41,714 42,941 44,167 45,394 46,621 Step 10 8,229 9,307 10,491 11,775 13,176 14,685 16,320 18,074 19,961 21,984 24,151 28,949 34,423 40,678 47,848 2023 Additional Adjustments for Special Rate Tables in the State of Hawaii (Annual Amounts in Dollars) Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Step 1 4,445 4,999 5,454 6,123 6,850 7,636 8,485 9,397 10,379 11,430 12,558 15,052 17,898 21,151 24,879 Step 2 4,595 5,118 5,636 6,327 7,078 7,890 8,768 9,710 10,725 11,811 12,976 15,553 18,495 21,855 25,708 Step 3 4,742 5,283 5,818 6,531 7,307 8,145 9,051 10,024 11,071 12,192 13,395 16,055 19,092 22,560 26,537 Step 4 4,890 5,423 6,000 6,735 7,535 8,399 9,334 10,337 11,417 12,573 13,813 16,557 19,688 23,265 27,366

Step 5 5,037 5,484 6,182 6,939 7,764 8,654 9,617 10,650 11,763 12,954 14,232 17,059 20,285 23,970 28,195 1-1 Step 6 5,124 5,646 6,363 7,143 7,992 8,908 9,900 10,964 12,109 13,335 14,650 17,560 20,881 24,675 29,025 Step 7 5,270 5,807 6,545 7,347 8,221 9,163 10,182 11,277 12,455 13,716 15,069 18,062 21,478 25,380 29,854 Step 8 5,417 5,968 6,727 7,551 8,449 9,417 10,465 11,590 12,801 14,097 15,488 18,564 22,074 26,085 30,683 Step 9 5,423 6,130 6,909 7,755 8,677 9,672 10,748 11,904 13,147 14,478 15,906 19,065 22,671 26,790 31,512 Step 10 5,562 6,291 7,091 7,959 8,906 9,926 11,031 12,217 13,492 14,859 16,325 19,567 23,268 27,495 32,342

Attachment 1—2023 Additional Adjustments for Special Rate Tables in Nonforeign Areas 2023 Additional Adjustments for Special Rate Tables in Other Nonforeign Areas as Defined in 5 CFR Part 591 (Annual Amounts in Dollars) Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 1 3,465 3,581 3,696 3,811 3,926 3,993 4,107 4,222 4,227 4,335 2 3,896 3,989 4,118 4,227 4,274 4,400 4,526 4,652 4,777 4,903 3 4,251 4,393 4,535 4,676 4,818 4,960 5,101 5,243 5,385 5,527 4 4,772 4,931 5,090 5,249 5,408 5,567 5,726 5,885 6,044 6,204 5 5,339 5,517 5,695 5,873 6,051 6,229 6,407 6,585 6,763 6,941 6 5,952 6,150 6,348 6,547 6,745 6,943 7,142 7,340 7,538 7,737 7 6,614 6,834 7,054 7,275 7,495 7,716 7,936 8,157 8,377 8,597 8 7,324 7,568 7,813 8,057 8,301 8,545 8,789 9,034 9,278 9,522 9 8,090 8,359 8,629 8,898 9,168 9,438 9,707 9,977 10,247 10,516 10 8,908 9,205 9,502 9,799 10,096 10,393 10,690 10,987 11,284 11,581 11 9,788 10,114 10,440 10,766 11,092 11,419 11,745 12,071 12,397 12,723 12 11,731 12,122 12,513 12,904 13,296 13,687 14,078 14,469 14,860 15,251 13 13,950 14,415 14,880 15,345 15,810 16,275 16,740 17,205 17,670 18,135 14 16,485 17,034 17,584 18,133 18,683 19,232 19,782 20,331 20,880 21,430 15 19,390 20,037 20,683 21,329 21,976 22,622 23,268 23,915 24,561 25,207 1-2

Attachment 2—Capped Special Rates in 2023 Under 5 U.S.C. 5305(a)(1), the maximum special rate is the rate payable for level IV of the Executive Schedule ($183,500 in 2023). A total of 472 special rates are capped in 2023 and these are shown in the table below by special rate table code, grade, and step. Special Rate Table Code 0565 0566 0571 0576 0701 0702 0703 0704 0705 0706 0710 0711 0712 0713 0714 0715 0716 0717 0718 0719 0720 0721 0722 0734 0735 0736 0737 0738 0739 0740 0741 0742 0743 0744 0745 0746 0747 0748 0748 0749 0749 0750 0750 0752 0759 0759 0759 0760 0760 0761 Grade 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 14 15 14 15 14 15 15 13 14 15 14 15 14 2-1 Capped Steps 8-10 9-10 6-10 7-10 8-10 5-10 5-10 5-10 6-10 5-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 6-10 8-10 8-10 8-10 8-10 7-10 7-10 7-10 6-10 6-10 6-10 6-10 5-10 5-10 5-10 10 4-10 10 4-10 8-10 2-10 5-10 10 6-10 3-10 8-10 4-10 8-10 Attachment 2—Capped Special Rates in 2023 Special Rate Table Code 0761 0762 0762 0763 0763 0764 0764 0765 0766 0767 0771 0777 0777 0778 0785 0788 0788 0789 0789 0790 0790 0791 0791 0792 0793 0794 0795 0796 0797 0797 0798 0799 290A 290A 290H 290P 499A 499A 499H 499P 558A 558A 558H 558P 565A 565A 565F 565H 565H 566A 566A 566F 566H 566H 700H Grade 15 14 15 14 15 14 15 15 15 15 14 14 15 14 14 14 15 14 15 14 15 14 15 15 15 15 15 15 14 15 15 15 14 15 15 15 14 15 15 15 14 15 15 15 14 15 15 14 15 14 15 15 14 15 15 2-2 Capped Steps 5-10 9-10 6-10 10 6-10 10 7-10 8-10 8-10 9-10 9-10 8-10 2-10 8-10 9-10 6-10 1-10 8-10 3-10 9-10 3-10 10 4-10 5-10 6-10 6-10 7-10 8-10 10 4-10 7-10 5-10 8-10 4-10 7-10 8-10 10 6-10 9-10 10 8-10 5-10 7-10 9-10 6-10 1-10 8-10 8-10 2-10 7-10 1-10 9-10 9-10 4-10 5-10